Northern Cobalt (ASX: N27) has uncovered new cobalt targets similar in mineralisation to its flagship Stanton deposit within the Wollogorang project in the Northern Territory.
After examining historical rock chip and drilling samples, Northern Cobalt pinned the Selby pipe cluster as a future drill target.
Historical rock chips at Selby returned up to 21% copper while previous drilling intersected up to 0.14% cobalt and 0.19% copper.
Earlier exploration in the area had focussed on diamonds and phosphate, with cobalt and associated minerals overlooked.
Similar to Stanton, echo sandstone and karns dolomite rocks dominate the Selby area, with up to 100 times background cobalt and copper pathfinder element concentrations encountered in the echo sandstone.
To assess the area further, Northern Cobalt has planned an airborne magnetic survey and soil sampling.
The company kicked-off its scoping study for its flagship Stanton cobalt deposit last week and anticipates an upgraded inferred resource estimate for the deposit by the end of the current quarter.
It is anticipated the scoping study will wind up mid-year along with a further resource upgrade to indicated status.
The current inferred for Stanton sits at 500,000 tonnes grading 0.17% cobalt, 0.09% nickel and 0.11% copper.
In early December, Northern Cobalt reported it had uncovered more high grade, near surface cobalt at Stanton, with mineralisation remaining open in all directions.
Better results from that program included 11m grading 0.29% cobalt with a 2m interval containing 2.30% cobalt, and 9m grading 0.34% cobalt with a 1m interval of 2.33% cobalt, 0.45% copper and 1.01% nickel.
Drilling at the project wound up mid last month due to the advancing wet season. However, Northern Cobalt anticipates assay results from the 137-hole reverse circulation program across the entire project would continuing flowing through till February.
Mineralisation identified at Stanton and other project areas is predominantly cobalt sulphide and non-refractory, which Northern Cobalt claims will lower processing expenses by eliminating the need for roasting to eradicate gangue elements such as iron.
The lithium-ion battery and electric vehicle sectors are driving global cobalt demand with the metal hovering at US$75,000 per tonne the last few weeks.
Situated in the Northern Territory in a mining friendly jurisdiction, Northern Cobalt is fast tracking Wollogorang to take advantage of the commodity’s mounting demand and rising price.
Northern Cobalt’s share price ended the day up almost 3% at A$0.52.